Chanel Global Pricing Adjustment Squeezing Purchasing Space

China's consumer market is supported by the global consumer market, but the Chinese market is just a regional concept.

Today, China is no longer the strategic focus of many luxury brands. It needs to be recognized that this is completely different from before.

Chanel's global adjustment involves the price of 2.55 classic handbags - the price of 11.12, Boy and 3.

But before the official price adjustment on Wednesday, some Chinese boutiques had lowered their handbag prices ahead of schedule.

In Europe, the price of classic package 11.12 rose from 3550 euros to 4260 euros.

In China, the same handbag was reduced from 38200 yuan to 30000 yuan.

The price of the classic package Boy will rise from 3100 euros to 3720 euros, while in China it will drop from 32700 yuan to 26000 yuan.

Consumers of luxury luxury shopping centers, such as Chanel, C, line, Dior and many other international luxury brands, are welcomed by consumers in Shanghai Hang Lung Plaza.

Clerk Tessa Feng and her husband were shopping with a classic Chanel bag of 2.55. "I love Chanel."

In China, I think more and more consumers will buy Chanel products instead of waiting for them or their friends to travel back to the market, if the price difference is less than 5%.

Other consumers expressed concern about how consumers in Europe will deal with price adjustment because they will have to pay about 20% of the price difference to buy products.

"This is a good thing for Chinese consumers. We are all happy to laugh, and French consumers may be very angry.

Chanel is a French company, but they raise their price in France.

If Chinese brands do this, Chinese consumers will certainly feel unhappy.

Zengdong Yang, a teacher at a school in Shanghai, said.

However, there are still some consumers who support Chanel's move. They do not want more brands to join in the similar price strategy hastily, because if they sell products at a lower price, it will undoubtedly degrade the possibility of brand image and reputation.

"I don't think this is a wise choice.

Compared with cheap goods, Chinese consumers are more accustomed to buying expensive products as their real luxury.

Administrative Assistant Joanna You said.

Smith Street Solutions Retail Director James Button agrees that this strategy is the first exclusive proposal and that the brand has a very high reputation to benefit from it, such as Chanel.

But in fact, Chanel customers may not buy other brands because of price driving.

He pointed out that many companies also benefit from the profits of Chinese consumers when they shop overseas, rather than in their own stores, which means that price adjustment does not necessarily affect the bottom line of the company.

"Chanel's status allows them to do so, because they set it up.

Not to eliminate other brands.

It will depend on how they perceive the retail network in China and what their strategy is.

Now, you will see that some brands use their Chinese shops as display shops, so you have to consider whether it is worth changing strategies to let consumers return to the Chinese market.

Under these circumstances,

There may be a lot of meaning if they do.

It will continue to consume overseas stores, while China will continue to maintain a display shop status, which will involve a different retail strategy. "

Smith Street Solutions Retail Director James Button added.

On the other hand, Michael Zakkour, co-author of China's s Super Consumers, director of Tompkins International Management Consultants Limited, believes that every brand should seriously consider whether the price of their mainland China will be brought to the price of their other local product lines.

"Now luxury consumers in China have better incentives to buy Chanel products in their own country.

Chanel understands that consumers love their brands and recognize that a more global market is e-commerce without borders.

The increase of passengers means that brands have to integrate their businesses across borders, instead of treating them as completely independent entities.

In fact, I have been using this strategy to guide my luxury and high-end brand customers for two years.

This is a necessary change for many brands. "

Michael Zakkour indicates.

In any case, analysts believe that the Chanel price adjustment strategy will frustrate the resale market, or in China's "purchase" market.

This is a market for buying goods overseas through agents, and then reselling them to mainland consumers.

"Purchasing agents can let them continue to travel abroad for shopping as long as there is price difference.

Some luxury brands are priced at more than 80% of the price in Beijing than in Paris. High profits have made this kind of industry very attractive.

Once consumers buy goods at home, there is no big difference. The demand for purchasing agents will be reduced. "

Angelito Tan, co-founder of RTG Consulting, a luxury brand consultancy management company, said.